US sanctions 39 entities over ‘shadow banking’ network for Iran

 

The United States (U.S.) has imposed sanctions on 39 entities, mostly operating in Hong Kong, accusing them of being a “shadow banking” network for the Islamic Republic of Iran that generates tens of billions of dollars annually.

The US said that the 39 entities were facilitating Iran’s access to the global financial system. On Thursday, the US Treasury Department said in a statement that those 39 entities helped sanctioned companies, like Persian Gulf Petrochemical Industry Commercial Co (PGPICC) and Triliance Petrochemical Co Ltd, to get access to the international financial system and helped them hide their trade with foreign customers.

Wally Adeyemo, United States Deputy Secretary of the Treasury, said, “Iran cultivates complex sanctions evasion networks where foreign buyers, exchange houses, and dozens of front companies cooperatively help sanctioned Iranian companies to continue to trade.”

The latest move comes as efforts to revive historic Iran’s 2015 nuclear deal have stalled and ties between Iran and the Western countries are strained over the Iranian authorities' crackdown on anti-government and anti-hijab protests.

Last month, the United States sanctioned three firms in Singapore and Malaysia, accusing them of playing an important role in the production, sale and shipment of Iranian petrochemicals and petroleum oil to buyers in Asian countries. The US imposed sanctions on six Iran-based petrochemical manufacturers and three companies in Malaysia and Singapore.

Brian Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence of the United States, said that the Washington would continue to enforce its sanctions against Singapore-based Asia Fuel Pte. and Unicious Energy Pte. along with Malaysia-based Sense Shipping and Trading Sdn. if they continued doing business with Iranian companies.

The US has imposed sanctions on various Iranian entities and officials in recent months, accusing them of violently cracking down on protests that were sparked by the death of a young Iranian woman in police custody.